MISSING THE BOAT
ISA Holdings has seen very little share price action lately as the share price is stuck around 60c. Profits have been lacklustre on the back of weak demand from the banking sector which it operates in, offering IT security. In many senses it has been a lazy company, paying a strong dividend but not really expanding or growing. Surely, the recent cautionary announcement is going to change that? The question is whether it is buying or being bought? If it is the latter (and that would be my guess), then there are many companies (listed and unlisted) who would surely love to have this niche IT player added to their services. If this is indeed the case, one has to lament the missed opportunity for ISA to be much greater if they’d paid fewer dividends and expended operations via acquisitions. The EOH and Adapt IT model is not a guaranteed success (and it’s still early days for Adapt IT)
*The writer owns shares in Capitec.